The Short Answer

A federal tax lien can significantly delay or derail a home sale because most buyers (and title companies) will not close unless the lien is paid, released, or otherwise resolved at closing. In a probate context, the lien generally does not disappear just because the owner died—existing liens can continue to encumber the property and must be addressed before you can deliver clear title.

What Pennsylvania Law Says

In Pennsylvania probate, a key concept is that liens and charges that exist at the time of death are not wiped out by the probate process. That means if a federal tax lien attached to the decedent’s property before death, it can remain a title problem that must be handled as part of the estate administration and any sale.

The Statute

The primary Pennsylvania law governing this issue is 20 Pa.C.S. § 3381.

This statute establishes that liens and charges on a decedent’s real or personal property that existed at death are not impaired—so the estate (and ultimately the buyer/title company) still has to contend with them.

Why You Should Speak with an Attorney

While the statute provides the general rule, applying it to your specific situation is rarely simple. Legal outcomes often depend on:

• Strict Deadlines: Probate and creditor-claim timing issues can affect leverage and options, and a pending closing date can create real pressure if the lien payoff or resolution is not ready in time.
• Burden of Proof: You may need clear documentation showing whether the lien attaches to the entire property, only the decedent’s interest, or whether there are priority issues with mortgages and other liens.
• Exceptions: Federal tax liens raise special priority and release/discharge issues that don’t work like ordinary Pennsylvania judgment liens, and the “right” solution can change depending on how title is held (sole owner vs. joint ownership), whether the estate is insolvent, and what the sale proceeds will be.

Trying to handle this alone can lead to a failed closing, unexpected reductions in net proceeds, or disputes among heirs/beneficiaries. A Pennsylvania probate attorney can coordinate with the title company and tax professionals to protect the estate and get the sale to closing with clean title.

Get Connected with a Pennsylvania Attorney

Do not leave your legal outcome to chance. We can connect you with a pre-screened probate attorney in Pennsylvania to discuss your specific facts and options.

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Disclaimer: This article provides general information under Pennsylvania law and does not create an attorney-client relationship. Laws change frequently. For legal advice specific to your situation, please consult with a licensed attorney.